What is the nature of specific land use problems, alternative
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Transcript What is the nature of specific land use problems, alternative
12-b.
Sustainability & Natural Resource Management?
[Sustainable Economic Development,
Production/Consumption, & Local Communities]
Larry D. Sanders
(SPRING 2002)
Dept. of Ag Economics Oklahoma State University
1
INTRODUCTION
(ch. 13-14-15 Hackett)
Purpose:
– to become aware of specific sustainability concepts
Learning
Objectives. To understand/become aware
of:
1.To understand the keys to sustainable economic
development.
2. To understand key issues for production/consumption
in sustainable systems.
3. To understand key issues related to the economics of
sustainable local communities.
2
Sustainable Economic Development
(ch. 13 Hackett)
Broadens
the traditional view of economic development
to include social & environmental factors
Traditional economic development:
–
–
–
–
focus on income growth (real per-capita income)
sometimes also addresses distributional issues
tends to favor large-scale projects
aid thru technical/financial assistance, & loans
Sustainable
–
–
–
–
development:
income growth
education
environmental regulations
information access/empowerment
-- local needs-based
--family planning
-- ecotourism
3
Alternate Theories in Sustainable
Economic Development
Weak Form
“Technological fix”; “5
capitals”; substitution ok
Indicators
– Green GDP
– Genuine Savings
– Index of Sustainable
Economic Welfare
(ISEW)
– GPI
Limitations--weak
on
protecting environment
Strong Form
Natural capital is
unique; substitution
won’t work
Indicators
– Carrying Capacity
– Biodiversity
– Ecological Footprint
Limitations
– ignores new
technology &
substitution concept
4
Alternate Theories in Sustainable
Economic Development (continued)
Weak Form
Arguments favoring
Strong Form
Arguments favoring
– Less Costly in short-tomid-term
Policy
– Uncertainty
– Irreversibility
– Scale (threshold
effects, etc.)
Implications
– counterbalancing effects
– environmental mitigation
Policy Implications
– safe minimum
standards
– preservation
5
Measurement options for
Weak Form Sustainability
Macroeconomics
(GNP, GDP)
Green GDP (GDP less environmental expenses)
Genuine Savings (considers capital investment less
regeneration rate & excess waste)
ISEW (per-capita real consumption less social &
environmental factors, adjusted for future generations &
income inequality)
Genuine Progress Indicator (GPI: real personal
consumption adjusted for income distribution, ecological
& social costs, household & volunteer work)
6
Measurement options for
Strong Form Sustainability
Carrying
Capacity (based
on Net Primary Product
(NPP)--vegetation
produced on given land
area)
Ecological Footprint (EF-amount of land per capita
necessary to support
human consumption of
resources of food, energy,
timber, etc.)
7
Case Studies show difficulty in comparing alternate
measurement schemes w/traditional development
U.S. (& other rich developed countries)
– GDP continues to grow
– ISEW continues to decline
– GPI continues to decline
Less-Developed Countries (LDCs)
– many farmers become rural/urban laborers displaced
from land
– huge budgets lead to/encourage corruption
– weak oversight/penalties often result in
inefficiencies/failures/unintended consequences
– emphasis on export-oriented industry
8
Sustainable Production & Consumption
(ch. 14 Hackett)
Traditional
view:
– sustainable production is the
problem of LDCs
– sustainable consumption is the
problem of hi-income DCs
Hackett’s
view:
– All countries are challenged
– US, Japan, Germany investing in
cleaner, more environmentallyfriendly technologies
9
“Hard Path” vs. “Soft Path”
“Hard
Path”
– dependence on nonrenewable fossil
fuels (& polluting energy/production
systems)
– regional/national energy grids
“Soft
Path”
– government intervention to more
efficient energy, renewable & lesspolluting energy/production sources
– decentralized energy production (local
& home-based)
10
Soft Path Alternative Energy Sources
Solar
Biomass
Wind
Hydrogen
Methane
Ocean
waves
11
The Challenge for Sustainable
Production Technology
Create
firm-level profit opportunities
Provide similar goods/services or alternative that
fill similar needs
Be not much more expensive than conventional
alternative
Educate producers/consumers on need for change
Maintain competitiveness in the market
12
Product Life-cycle Analysis
Evaluation
of environmental & natural
resource impacts of products/services
throughout lifecycle from extraction,
production, marketing/distribution, use &
disposal
European method for waste management
policy
– responsibility for disposal of aluminum cans is
with the company that is selling the product in
aluminum cans (Coke, Pepsi, etc.)
13
Government Intervention Options
EPR
(Extended Producer
Responsibility) Programs
(life cycling)
Tax/subsidize
Eco-labelling
Standards
Fund
research/development
Education
14
Sustainable Local Communities
(ch. 15 Hackett)
Ostrom’s
characteristics:
–
–
–
–
Inclusive
Democratic
Common vision
Efficient
monitoring/enforcement
– Adaptable to change
15
Challenges for Local Communities
Free
migration & trade lead to:
– export-based development, which leads to:
» population increases, unemployment, public financing at
risk, & exploitation of community & resources by firms
Alternative:
– Small business (import-substitution development),
which leads to
» increased diversity of economy
» increased democracy
» decreased income leakage
» limits on public financing risk
16
Other Issues for Locally Sustainble
Communities
How
to “grow” stocks of
– natural capital
– human capital
– human-made capital
Examples
of needs
– Education/training
– Telecommunications/new technology links
– Maintaining/enhancing noncommercial
amenities (parks, greenspace, arts, etc.)
17
Selected Economic Instruments for
Sustainble Community Development
Microlending
– very small-scale lending for low-income people w/o
collateral
– promotes empowerment, independence, entrepreneurial
creativity
Import-substitution small businesses
– promote local small business to encourage local
production & sale of goods/services that substitute for
imports
– promotes stability/diversity & reduces income leakages
18
Selected Economic Instruments for
Sustainble Community Development (cont.)
Ecotourism
– promote locals to host/guide tourists for neighboring
unique ecosystem
– provides financial incentives to protect environment &
alternative to exploiting the environment in harmful
ways
Land tenure rights
– secure land tenure & property rights
– recognize Common Property Rights
– reduces adverse impacts on common ground, &
encourages long term thinking w/r/t property use
19
Sustainable Community Examples
Torbel,
Switzerland
Japanese Village Commons
Spanish Irrigation Commons
Maine & Brazil self-governed Fisheries
Pahchayat Community Forests
20